Wingstop (NASDAQ:WING) Stock Jumps 5.8% - Still a Buy?

Key Points

• Wingstop shares jumped 5.8% to about $107.71, though trading volume was 39% below the average daily level. The stock remains below its 50-day and 200-day moving averages.
• Analysts have recently lowered price targets, but the consensus remains a “Moderate Buy”, with an average target of $236.44—well above the current share price.
• Wingstop beat quarterly EPS expectations, earning $1.18 versus the $1.02 consensus, while revenue rose 6.5% year over year. The company also increased its quarterly dividend to $0.33, representing a 1.2% yield.

Wingstop Inc. (NASDAQ:WING - Get Free Report) shot up 5.8% on Tuesday. The company traded as high as $106.78 and last traded at $107.7060. Approximately 727,359 shares traded hands during trading, a decline of 39% from the average daily volume of 1,185,467 shares. The stock had previously closed at $101.80.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the company. BTIG Research lowered their price objective on Wingstop from $305.00 to $265.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Morgan Stanley lowered their price objective on shares of Wingstop from $255.00 to $238.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Mizuho dropped their price objective on Wingstop from $280.00 to $240.00 and set an "outperform" rating for the company in a research note on Friday, July 24th. Bank of America cut their price target on shares of Wingstop from $264.00 to $234.00 and set a "buy" rating on the stock in a research note on Wednesday, June 24th. Finally, Raymond James Financial reissued a "strong-buy" rating and issued a $185.00 price objective (down from $240.00) on shares of Wingstop in a research note on Friday, September 18th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $236.44.

Wingstop Price Performance

The business's 50 day moving average is $115.89 and its 200-day moving average is $145.29. The company has a market cap of $2.96 billion, a PE ratio of 25.58, a P/E/G ratio of 1.18 and a beta of 1.79.

Wingstop (NASDAQ:WING - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.16. The business had revenue of $185.56 million during the quarter, compared to analysts' expectations of $190.25 million. Wingstop had a negative return on equity of 16.31% and a net margin of 16.15%.The business's quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.00 EPS. As a group, sell-side analysts predict that Wingstop Inc. will post 4.5 EPS for the current fiscal year.

Wingstop Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Saturday, September 5th. Investors of record on Saturday, August 15th were paid a $0.33 dividend. This represents a $1.32 annualized dividend and a dividend yield of 1.2%. This is a positive change from Wingstop's previous quarterly dividend of $0.30. The ex-dividend date was Friday, August 14th. Wingstop's dividend payout ratio (DPR) is 31.35%.

Institutional Investors Weigh In On Wingstop

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allworth Financial LP purchased a new position in shares of Wingstop during the 2nd quarter worth $34,000. Harbor Investment Advisory LLC acquired a new position in Wingstop during the second quarter worth approximately $46,000. Global Retirement Partners LLC acquired a new position in shares of Wingstop in the 2nd quarter valued at $62,000. GAMMA Investing LLC grew its stake in shares of Wingstop by 35.9% during the 2nd quarter. GAMMA Investing LLC now owns 382 shares of the restaurant operator's stock valued at $66,000 after buying an additional 101 shares during the period. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in shares of Wingstop in the 2nd quarter worth $69,000.

About Wingstop

Wingstop Inc is a fast-casual restaurant company specializing in cooked-to-order chicken wings and tenders. Its menu also includes fries, seasoned fries, dipping sauces, and beverages, with offerings built around a range of signature flavors and sauces. The company primarily operates through a franchise-based model.

Wingstop was founded in 1994 in Garland, Texas, and has expanded from its original location into a global restaurant brand. Its restaurants serve customers across the United States and in international markets through a network of franchised and company-operated locations.

Wingstop became a publicly traded company in 2015.

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